German Court Declares Fixed Cash Payments on Payment Cards Illegal

The Social Court in Hamburg has ruled that setting fixed cash payments on a payment card for refugees is illegal. The court determined that these fixed amounts fail to account for individual circumstances. The ruling came after a refugee family challenged the legality of the fixed payments, leading the court to urgently declare them unlawful.

The court criticized the 50-euro monthly cash limit on the payment card as inadequate. In its ruling, the court emphasized that personal and local circumstances of the refugees should have been considered. The Hamburg Immigration Office was instructed to assess the personal circumstances of each individual case before determining the appropriate cash amount. The court stressed that only through this individualized examination can the specific needs of refugees, particularly pregnant women and children, be properly addressed.

The court spokesperson stated, ‘Strict upper limits would not make this possible.’ At the same time, the court ruled that there were no legal objections to the payment card itself. According to the court spokesperson, ‘The card is not worthless, and it aligns with the societal trend of paying by card everywhere.'”

Hamburg was the first state to implement a standardized payment card system after a nationwide agreement among federal states. All states except Bavaria and Mecklenburg-Vorpommern have adopted the card. The Immigration Office transfers 185 euros per month to the card for each adult visa holder, with a monthly cash withdrawal limit of 50 euros.

The refugee rights group “Pro Asyl” opposes the use of the refugee payment card and is collaborating with other human rights organizations to prevent its distribution to other federal states. According to a spokesperson for the group, the payment card significantly complicates daily life for those affected, as refugees are unable to make affordable online purchases, buy second-hand goods, or sign up for cell phone contracts using the card.

In a case brought by a family of three refugees residing in an initial reception center in Hamburg, the court decided to increase the monthly cash withdrawal limit from the payment card to €270, up from the previous €110. The court took into account the fact that the mother is pregnant with a second child, indicating that the family requires a larger cash amount than the standard €50 per adult and €10 per child per month.

Leave a Reply

Your email address will not be published. Required fields are marked *